Service Firms Flashcards
(15 cards)
Why are communication firms important? (1 - big)
Producer organisations need to communicate effectively within their organisation to achieve maximum efficiency and to promote a common goal.
What is government spending? (3)
- Government spending includes all government businesses as well as spending on government-provided services (health, education, defence etc).
- It also includes spending given to firms to fulfil government contracts FOR goods and services.
- TR are usually considered to be part of G.
Define Direct Tax. (2)
- Direct taxes come out of the income stream and are taxes paid on wages, interest, rent, and profit.
- The most common direct tax is PAYE which is tax on wages and salaries.
What do communication services provide? (10)
- telephone services,
- internet,
- mail,
- couriers,
- fax,
- video-conferencing,
- conferences,
- eftpos,
- computer programming,
- call centres.
How is a furniture manufacturer and telecom interdependent? (2)
Telecom gives FM phone, fax and internet services (so FM can contact its suppliers + the buyers)
FM gives to Telecom income in the form of FEES and provides it with office equipment.
Legal (2)
Provision of:
- Legal advice - legal representation.
Define Accounting services (2)
- Knowing where and how firm’s resources being used is most important for EFFICIENCY.
- Good accounting provides the info for sound decision making, prevents wastage + assists the producers to become more efficient in their specialist area.
What do accounting service firm do? (3)
- Track goods, purchases + inventories
- Record sales and what goods are returned as faulty, and every year they provide statement of Financial Position and performance.
- Provide advice on taxation law and provide auditing service which check the accounts have been prepared according to the law.
What do the Financial Service firms provide? (3)
- Can provide loans (banks + other financial institutes)
- most producers would be unable to expand if they can’t borrow money against futurre profits.
- Give financial advice (e.g. dealing problem with the lanlord, employment contracts)
- Banks provide DEPOSIT services - allows sellers to deposit their takings inn safe + secure way.
What do transport services provide? (4)
Air: high value, small size, perishable cargoes (e.g. flowers)
Sea: bulk cargoes, most cost-effective (e.g. cement - doesn’t deteriorate)
road: door-to-door service
courier: send important parts needed quickly - documents, small parcels
Define Marketing Services (1)
Assists producers in making sure the output can reach as many potential buyers as possible, and that their product is what consumers want.
What does marketing services provide? (first 3
- Product research - finding out what people want, what they like/dislike about existing product, what they would be prepared to buy if it was available.
- Price - market research can help determine the price at which consumers will buy the quantities that the producer is wanting to make
- Packaging - which attractive design to pick? it should protect the product and so it arrives to the consumer in a good condition.
- persuading buyers to select client’s products over competitors.
What do marketing services provide (last 2)
- Channel of distribution - the way in which the product is bought to the ultimate consumer.
- e.g. shampoo in supermarket or pharmacy
- Promoting the product - merchandising and advertising.
Definition of advertising. (3)
- Persuades the consumers to choose their product over the competitors
- tells consumers the product available, where to buy it, may give essential product info.
- emphasises the unique selling point of product (why product best)
Define merchandising (1 + e.g.)
Helping store owners promote products so customers want it.
e.g. displays, window-dressing, in-store demonstration.
